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Khurshid (Secretary)     07 January 2015

Transfer of property in chs

Dear Sir,

I had two flats in my name in one of the suburbs of mumbai. I sold these flats to buy another flat. The sale amount was not as much as I required, hence I took loan to buy this particular flat.  The flat which I bought is combined flat i.e. 1BHK and 1RK flat.  (flat was already combined when purchased)  Everything is two in this flat i.e.  maintenance bills, to electricity bills, two share certificates etc. we did not have any problem with that and hence bought the flat.  Both the flats were purchased in my name i.e. First name is mine in both the flats and second name is of my husband is one agreement and my father in another agreement.  When the time came for the CHS to transfer the shares in our names, it raised objections.  Can you help me with this.  SInce the flats I sold were in my name - hence I had to purchase the flat in my name and since I took loan therefore the flats are in my name.



 1 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     07 January 2015

 As per the existing tax provisions, long-term capital gain arising from sale of a capital asset is exempt under Section 54/54F if invested in purchase or construction of a house property, subject to certain conditions. To get the captain gains exemption, the assessee needs to purchase the new residential house within a period of one year before or two years after transfer of the original house. For under-construction properties, the construction needs to be completed within three years from the date of transfer of the original house.

It has now been clarified that the investment for getting capital gains benefit should be made in one residential house property situated in India, not abroad. This amendment will apply in relation to the assessment year 2015-16 and subsequent years.


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